The tax changes announced affects only the 'Low Earners'. No tax payable for taxpayer with assessable income of £11,200 or less (increase of £50)

Please note that Social Insurance has been increased by 10% effective as from 01/07/2018.

Gross Income Based (GIB) System Tax Rates

A) Up to £25,000

First £10,000 @  6%

Next  £ 7,000 @ 20%

Balance       @ 28%

B) Above £25,000

First £ 17,000 @ 16%

Next  £  8,000 @ 19%

Next  £ 15,000 @ 25%

Next  £ 65,000 @ 28%

Next  £395,000 @ 25%

Next  £200,000 @ 18%

Balance        @  5%

Allowance Based System (ABS) Tax Rates

First £ 4,000 @ 14%

Next  £12,000 @ 17%

Balance       @ 39%

A tax credit of £300 (or 2% if higher) will be given of their annual tax bill.

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Social Insurance contributions has increased by 10% this year as under:

Employee

10% on Gross earnings Per Week with Maximum of £30.25 and Minimum of £6.05 (Increase of £2.75 PW)

Married Woman

Increased from £14.50 to £15.95 (Per Week) (Increase of £1.45 PW)

Employer

20% on Gross earnings Per Week with Maximum of £40.15 and Minimum at £18.15 (Increase of £3.65 PW)

Self Employed

20% on Gross earnings Per Week with Maximum of £36.85 and Minimum of £12.10 (Increase of £3.35 PW)